1. Columbus Regional Workforce Analysis Executive Presentation February 2014

2. Project Objectives 2  Identify and evaluate the various labor sheds that are present in the 11-county region  Define, in detail, the size, key attributes, and workforce trends within each labor shed  Assess underemployment, unemployment, and those not in the labor force through analysis and workforce surveys  Define key deficits and surpluses within the local labor supply and the impact on key economic sectors  Assess the impact of organized labor in the region  Conduct employer interviews to understand their perspective of the regional workforce  Compare the Columbus Region nationally and to a select group of competitors (metro areas and national averages) Through interviews with project stakeholders, SSG and Columbus 2020 identified the following objectives for the comprehensive workforce analysis:

3. Report Sections 3 Overview of Data SourcesLabor Shed IdentificationWorkforce Trends & AttributesUnderemployment & Labor Force ParticipationOccupation/Skill-Set Surplus & Deficit AnalysisOrganized Labor ClimateCompetitive BenchmarkingEmployer Interview Results The comprehensive report is organized into eight sections. Those sections are highlighted below:

4. Overview of Data Sources 4 SSG’s Internal Data Sources Primary Research Employer Interviews Online Workforce Survey SSG gathered data from a variety of sources, all of which can be classified into four categories:

5. Labor Shed Identification 5  Franklin (represented by the light blue counties)  Marion-Logan-Union  Morrow-Marion-Delaware-Knox  Licking-Fairfield  Pickaway Labor sheds were identified and drawn using a combination of quantitative and qualitative data from individual surveys, employer interviews and internal databases. SSG identified the following five labor sheds, all of which contain Franklin County.

6. Key Workforce Attributes 6 Labor ShedPopulation Population Growth Labor Force Labor Force Participation Median Household Income Franklin2,698,9522.23%1,416,37977.74%$48,277 Marion-Logan-Union1,960,3812.72%1,045,18878.24%$48,877 Morrow-Marion-Delaware-Knox1,730,2672.86%929,04379.19%$48,525 Licking-Fairfield1,847,9832.66%986,46578.21%$47,049 Pickaway1,537,8682.97%826,49278.52%$47,415 Each labor shed was profiled based on key workforce attributes. Those attributes included relevant demographic data, economic indicators, and occupation & industry trends. The following table provides a basic snapshot of each labor shed.

7. Education Attainment Trend 7

8. Readily Available Workers 8 SSG quantified the number of readily available workers in the region by using the following equation. The table below provides the results. # of Those Not in Labor Force, but willing to re-enter # of Unemployed# of Underemployed Readily Available Workers ++=

9. Graduate Surplus & Deficit Analysis 9 The following graph shows the number of graduates in each program of interest relative to the corresponding entry-level jobs. A percentage over 100% suggests there are more graduates in the Columbus region than there are job opportunities.

10. The following graph shows the surplus (or deficit) of graduates in each program of interest relative to the corresponding entry-level jobs. A positive number suggests there are more graduates in the Columbus region than there are job opportunities. Graduate Surplus & Deficit Analysis - Continued 10

11. Competitive Benchmarking 11 MSASTATETOTAL INDEX LABOR AVAILABILITY LABOR COST Phoenix-Mesa-GlendaleAZ 117.3%123.9%101.9% Atlanta-Sandy Springs-MariettaGA 115.8%123.6%97.5% Orlando-Kissimmee-SanfordFL 114.8%118.7%105.6% Tampa-St. Petersburg-ClearwaterFL 113.3%116.5%105.8% Miami-Fort Lauderdale-Pompano BeachFL 112.3%117.5%100.3% Indianapolis-CarmelIN 111.9%115.7%103.0% ColumbusOH 111.3%116.0%100.3% PittsburghPA 110.7%114.4%101.8% Austin-Round Rock-San MarcosTX 110.6%115.9%98.4% Salt Lake CityUT 110.5%114.3%101.6% Charlotte-Gastonia-Rock HillNC-SC 109.3%113.4%99.6% San Antonio-New BraunfelsTX 108.2%108.7%107.0% Nashville-Davidson--Murfreesboro--FranklinTN 107.9%109.3%104.6% Oklahoma CityOK 107.3%106.0%110.2% Cincinnati-MiddletownOH-KY-IN 106.9%110.2%99.0% Louisville-Jefferson CountyKY-IN 100.8%98.9%105.1% SSG constructed a custom national benchmark model that scores and ranks all 186 metropolitan statistical areas of the United States with a population greater than 250,000. The scoring is based on weighted workforce variables that measure Labor Availability and Labor Cost. The following table shows those communities that score above average in both Labor Availability and Labor Cost categories, as well as the six competitive markets previously identified by Columbus (in green). A score of 100% in any category is considered average. The higher the index, the more favorable the score. Labor Availability  Labor Scalability  Target Occupation Presence  Target Occupation Growth  Education Attainment  Target Age Groups  Household Income Distribution  Post-Secondary Graduates Labor Costs  Median Household Income  Cost of Living  Housing Costs  Target Occupation Wages

12. Competitive Benchmarking - Continued 12 The following table shows how the Columbus MSA scores against each competitive market in each sub category that measures Labor Availability & Labor Cost.

13. Employer Interview Summary 13 Labor Criteria Rankings General applicant flow for available positions3.2 Availability of skilled workers2.7 Availability of unskilled workers3.6 Worker productivity3.8 Worker reliability3.6 Soft skills3.1 Worker reading, writing, and math skills3.4 Teamwork skills3.7 Flexibility/adaptability to change3.5 Critical reasoning skills3.1 Education attainment of applicants3.5 Experience level of applicants3.1 Employee turnover3.6 Employee absenteeism3.5 Employee attrition3.6 Employment SizeResponses Less than 5014 50 to 9910 100 to 24920 250 to 49910 500 or More16 CountyResponses Delaware5 Fairfield5 Franklin26 Knox4 Licking5 Logan3 Madison3 Marion4 Morrow4 Pickaway5 Union7 SSG interviewed 71 employers in the 11-county region. Despite the use of a questionnaire, the interviews conducted by SSG were designed to be more informal, free-flowing and relaxed, especially with high-ranking executives. Typically, most interviews lasted between 45 minutes to one hour. In addition to other qualitative and quantitative measures, the respondents were asked to rank the categories in the table at right on a 1 to 5 scale, with 5 being most favorable. The table shows the average scores.

14. Organized Labor Assessment 14 The following graph shows the unionization rates, both public and private, for each competitive MSA as identified in the Competitive Benchmarking Section.

15. Organized Labor Assessment - Continued 15 The data in the graph below was generated from responses to the online workforce survey. SSG asked all participants their attitude towards unions. 74% of respondents have no opinion of or do not support unionism.

16. Key Findings & Conclusions 16 Challenges:  Lack of vocationally trained workforce (post-high school); Employers are shouldering the burden  The post secondary education system isn’t keeping up with the demand for IT talent, Precision Production, Maintenance & Repair Talent, and Logistics  Negative perception of career potential in the Advanced Manufacturing and Logistics industries  There is an $10.00/hr. wage threshold for unskilled workforce talent  There will be as many people exiting the workforce as there will be entering the workforce in the next 10 years  There is a generational divide present in the workforce  The region’s organized labor statistics vary greatly from the attitudes of the workforce and opinions of employers  Market wages are slightly above average compared to the competitive locations Opportunities  The labor force in the region is relatively fluid and staffing a qualified workforce at market wages is feasible throughout the region.  There is a wage gap of $14.00 - $16.00/hr. and a salary gap of $43,000-$47,000 among the underemployed  It would take a wage of $17.00 - $19.00/hr. or a salary of $50,000-$54,000 to entice the majority of those not in the labor force to re-enter  The workforce characteristics strongly supports each of the target industries  Abundance of engineering talent in the region Throughout the course of the project, SSG identified the following challenges and opportunities present in the Central Ohio region.

17. For additional information please contact: Site Selection Group, LLC 8300 Douglas Ave. Suite 700 Dallas, TX 75225 (214) 271-0580 www.siteselectiongroup.com